ON Semiconductor Completes Acquisition of ISBU from Cypress Semiconductor

PHOENIX, Ariz. – Feb. 28, 2011 – ON Semiconductor (Nasdaq: ONNN), a premier supplier of high performance silicon solutions for energy efficient electronics, has completed its acquisition of the CMOS Image Sensor Business Unit (ISBU) from Cypress Semiconductor in an all cash transaction for approximately $31.4 million, subject to adjustment under the purchase agreement. The purchase price was approximately 1x annual sales for the division.

The ISBU purchased from Cypress includes a broad portfolio of high-performance custom and standard CMOS image sensors used in multi-megapixel machine vision, linear and two dimensional (2D) bar code imaging, medical x-ray imaging, biometrics, digital photography and cinematography, and aerospace applications. The acquired products include the VITA, LUPA, STAR and IBIS families, which are well known throughout the industry.

ISBU is expected to become an integrated part of ON Semiconductor’s Digital, Military/Aerospace and Image Sensor (DMI) division under the direction of Vince Hopkin, vice president of DMI.

“The ISBU acquisition solidifies ON Semiconductor’s position as a Top 10 worldwide image sensor supplier and a leading supplier of CMOS Image Sensor products,” said Hopkin. “The 2D high-speed CMOS image sensors from the ISBU are a natural complement to ON Semiconductor’s existing electro-optical product portfolio which includes 1D CMOS linear contact image sensors (CIS), ambient light sensors (ALS) and proximity sensors. In addition, the acquisition strengthens the company’s talent base and adds an experienced design and applications engineering team for the image sensor market segment. Overall, the 2D high-speed CMOS image sensors from the ISBU significantly strengthens and complements ON Semiconductor’s image sensor products for the industrial, medical, computing and military/aerospace markets.”

With this acquisition, ON Semiconductor acquires approximately 100 patents and patent applications related exclusively to the business and receives appropriate intellectual property licenses from Cypress Semiconductor in order to continue to conduct and grow the business. As part of the transaction, approximately 70 Cypress Semiconductor ISBU employees join the ON Semiconductor organization. The majority of these employees are located in Mechelen, Belgium.

Additional details regarding the ISBU acquisition will be discussed during ON Semiconductor’s first quarter 2011 earnings call to be held in May.

For the time being, all newly acquired ISBU products will retain the Cypress brand.